What just happened? HP has agreed to pay $4 million to settle allegations that it misled customers with deceptive pricing on its website, bringing closure to a class-action lawsuit first filed in October 2021. The case centered on claims that HP’s website displayed inflated original prices for computers and accessories – creating the illusion of significant discounts that, according to the plaintiffs, rarely existed.

The lawsuit accused HP of using “strike-through” pricing – showing a higher, crossed-out price next to a lower sale price – to suggest that shoppers were getting a special deal. However, the complaint alleged that these original prices were often not the actual regular or recent prices of the products in question.

For example, one cited incident involved an HP All-in-One computer advertised as discounted from $999.99 to $899.99, even though the higher price was rarely, if ever, used in the months leading up to the sale.

Plaintiffs argued that such tactics induced consumers to pay more than they otherwise would have, believing they were benefiting from limited-time offers and low inventory – when, in reality, the lower price was the norm.

Under the settlement terms, HP will establish a $4 million fund to compensate affected customers, cover administrative costs, pay attorneys’ fees, and provide service awards to the lead plaintiffs.

Eligible consumers include those who purchased HP desktops, laptops, mice, or keyboards at a discount directly from HP’s website between June 5, 2021, and October 28, 2024 – provided the product was on sale for more than 75 percent of the time it was offered.

Compensation will range from $10 to $100 per product, depending on the item purchased. Higher-end models, such as HP Spectre and Envy laptops, qualify for larger payments. Each claimant’s final amount may be adjusted based on the number of valid claims submitted.

The settlement does not require HP to admit any wrongdoing. The company denied the allegations in a statement but agreed to the settlement to avoid the expense and uncertainty of ongoing litigation. The final approval hearing is scheduled for August 21, 2025, and class members must submit claims by June 9, 2025, to be eligible for compensation.

HP’s case highlights a broader issue in the e-commerce industry, where misleading reference pricing has come under increasing scrutiny. Similar lawsuits have been filed against other major retailers, including Amazon, which faces allegations of advertising fake “limited-time” discounts on its Fire TV products using inflated list prices that do not reflect recent sales.

In Australia, Dell was fined AU$10 million (about $6.5 million) after a court found it had overstated discounts on bundled monitors, sometimes charging customers more for add-ons than if the items were purchased separately.

While the $4 million settlement is a modest sum for a company of HP’s size – it reported $13.5 billion in net revenue for its most recent fiscal quarter – the case reflects growing consumer frustration over deceptive online sales practices and signals that courts and regulators are increasingly willing to hold tech companies accountable for misleading advertising.